PDW Secures $35M Strategic Boost: Will Ondas Holdings' Defense Tech Play Pay Off?

Ondas Holdings Inc. (ONDS) has injected $35 million into Performance Drone Works (PDW), marking a significant power move in the autonomous defense sector. The funding fuels PDW’s expansion across three fronts: ramping up production for its flagship C100 and AM-FPV combat platforms, beefing up engineering teams to enhance autonomy and systems integration, and locking in domestic, NDAA-compliant supply chains. This isn’t just about strengthening PDW—it’s a calculated bet on Ondas’ position as a heavyweight in AI-driven defense and security solutions.

The Revenue Numbers Tell the Story

Ondas is having a moment. The company raised its 2025 revenue outlook to at least $36 million, a significant jump from the prior $25 million guidance. The uptick reflects solid performance from its Ondas Autonomous Systems (OAS) division and recent acquisitions, backed by a $23.3 million backlog.

Real-world wins are stacking up. Ondas recently landed an $8.2 million order from a major European security agency to deploy Iron Drone Raider counter-UAS systems at one of Europe’s largest airports. The Airobotics unit is running point on integration and deployment. Looking ahead to 2026, Ondas is swinging for the fences with a target of at least $110 million in revenue—though quarterly volatility could impact timing.

How ONDS Stacks Up Against the Competition

Draganfly Inc. (DPRO) is playing a similar game. The company just picked up a key international military order for its Commander 3XL drones through a major defense contractor, marking its official entry into a broader DoD evaluation program. It’s also supplying Flex FPV drones to the U.S. Army—strategic wins, but still early-stage scaling compared to Ondas’ pipeline.

Red Cat Holdings, Inc. (RCAT) is the growth story of the moment. In Q3, Red Cat posted $9.6 million in revenue—a staggering 646% year-over-year jump and 200% sequential growth. The catalyst? The U.S. Army’s SRR Tranche 2 program expansion, now valued at approximately $35 million (matching Ondas’ PDW investment). Red Cat has upped its full-year 2025 guidance to $34.5–$37.5 million and maintains strong liquidity for manufacturing scale and acquisitions.

The Valuation Question

ONDS shares have surged 587.3% over the past six months, vastly outpacing the Communication - Network Software industry’s 6.7% decline. That said, the stock isn’t cheap: it’s trading at a forward 12-month P/S ratio of 31.3 versus the industry average of 2.0—a premium that demands execution.

The Zacks Consensus Estimate for ONDS’ earnings has been revised significantly upward over the past 60 days, reflecting growing investor confidence in the PDW play and defense tech tailwinds. ONDS currently carries a Zacks Rank #3 (Hold) rating.

The Bottom Line

The $35 million PDW investment positions Ondas to capture a slice of the booming autonomous defense market. With strong 2025 momentum, a $110 million 2026 target, and real military orders flowing in, the company has the runway and strategy to execute. The question isn’t whether defense drones are hot—competitors like Draganfly and Red Cat prove that. It’s whether Ondas can deliver on its ambitious guidance while maintaining its current valuation premium in a rapidly consolidating sector.